China Molybdenum Co Ltd’s wholly-owned subsidiary CMOC Limited has entered into a share purchase agreement with Anglo American plc to acquire its niobium and phosphate business in Brazil for US$1.5 billion.

CMOC will acquire all issued and outstanding shares of Anglo American Fosfatos Brasil Limitada and Anglo American Nióbio Brasil Limitada, as well as their related subsidiaries and associated marketing functions.

The consideration will be funded in cash and undrawn credit facilities from CMOC’s existing financial resources. CMOC anticipates that the transaction will be completed in the second half of 2016.

CMOC believes the transaction represents a compelling fit with its strategy of acquiring high quality growth assets while achieving earnings, commodity, and geographic diversification. It positions CMOC as the second-largest supplier of phosphates in Brazil and the second-largest niobium supplier globally.

CMOC chairman and executive director Li Chaochun said, “This transaction marks another important milestone for the company’s overseas growth consistent with our corporate strategy. By pursuing this transaction, we solidify our leadership position in specialized alloys while establishing a meaningful strategic position in Brazil and South America."

CMOC International CEO Kalidas Madhavpeddi said, “CMOC will become stronger and more profitable by diversifying our business both geographically and by product lines. This transaction adds long life, cost-competitive production to our portfolio and gives us a foothold in three leading international mining jurisdictions, Australia, Brazil and China.”

CMOC is primarily engaged in the mining, processing and marketing of mineral products. CMOC is one of the world’s largest molybdenum and tungsten producers, and Australia’s fourth largest producer of copper. CMOC’s key operating assets include Sandaozhuang molybdenum-tungsten mine and facilities in Luoyang, China as well as the Northparkes copper-gold mine near Parkes, NSW, Australia.

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